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Explain how the Japanese economy fell into recession in the early 1990s. Briefly analyse the reasons why monetary and fiscal policies ineffective in stimulating GDP

Explain how the Japanese economy fell into recession in the early 1990s. Briefly analyse the reasons why monetary and fiscal policies ineffective in stimulating GDP growth and hence pulling the economy out of the liquidity trap?

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Answer The Japanese economy fell into a prolonged recession in the early 1990s often referred to as the Lost Decade which extended beyond ten years Heres an explanation of how it happened and why trad... blur-text-image

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